GETTING A MORTGAGE


What do I need?


Welcome to the property boom! In areas of high prices, some lenders are offering up to five times an individual's salary. Self-certification mortgages have also increased in popularity. You do not have to provide proof of your earnings to a mortgage company, making them useful for the self employed and freelancers, but research has shown that in a rising market buyers are being tempted to borrow much more than the recommended 3.25 times limit - sometimes up to eight times their salary. This is highly dangerous. Be warned that interest rates are at their lowest level for around 50 years, and could always go up. If interest rates climbed to 10%, a level they last reached in 1992, then the repayments would cost more than your monthly salary.